Posted by JohnBoy on February 07, 2001 at 01:21:50:
In this case the trust would own the property. The tenant would become a co-benificiary with occupancy rights. Since they are a c0-beneficiary of the trust, they have a beneficial interest and since they would be the one’s occupying the property, they would be entitled to deduct the interest and property taxes. The trust agreement would allow for the resident co-beneficiary to lease the property from the trust and allow them a “first right of refusal” to buy the property at a preset date that the trust sets as a date for the property to be sold. At that time the property must be sold according to the terms of the trust agreement and upon the sale of the property each beneficiary would recieve their share of the proceeds based on their percentage of beneficial interest owned in the trust. Since the resident beneficiary that is leasing the property from the trust, they have first right of refusal to buy the property themselves if they so choose. Otherwise the property is sold to another buyer and all beneficiaries get their fair share of the proceeds based on their percentage of beneficial interest owned in the trust agreement.
Did I get that right???